New Regulation On Instant Credit Transfers – Key Takeaways.

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Entry into force of Regulation (EU) 2024/886 as regards instant credit transfers in euro.
Luxembourg Finance and Banking
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Entry into force of Regulation (EU) 2024/886 as regards instant credit transfers in euro1

Instant credit transfers are credit transfers which are executed immediately, 24 hours a day and on any calendar day. In order to unlock the potential of instant credit transfers, the EU legislator adopted the ICTr Regulation.

Instant credit transfers have been identified as benefitting payment service users (“PSUs”) and furthering the business of payment service providers (“PSPs”). The ICTr Regulation has been designed to ensure that all PSPs in the European Union are able to receive and send instant credit transfers in euro.

The objective is to create an integrated market for instant credit transfers in euro with transactions being processed on the basis of harmonized common rules. An instant credit transfer in euro enables funds to be credited to the account of the payee within seconds and round the clock. The round-the-clock availability every day of the year is an intrinsic feature of instant credit transfers.


The PSPs, including payment institutions (“PIs”) and electronic money institutions (“EMIs”), that already offer credit transfers will be required to offer their PSUs the payment service of sending and receiving instant credit transfers in euro. Specific requirements will apply to the provision of instant credit transfers, in addition to the general requirements applicable to the provision of all credit transfers. 


The round-the-clock availability every day of the year of the instant credit transfers requires specific conditions to be fulfilled, including as regards the time of receipt of payment orders, processing, crediting and value dating.

In particular, when receiving an instant credit transfer from the payer's PSP, the payee's PSP shall within 10 seconds make the amount of the payment transaction available on the payee's payment account and confirm the completion of the payment transaction to the payer's PSP. Where the payer's PSP has not received a message from the payee's PSP confirming that the funds were made available on the payee's payment account within 10 seconds of the time of receipt, the payer's PSP shall immediately restore the payment account of the payer to the state in which it would have been if the transaction had not taken place.

Transaction limits

Upon the request of the PSU, a PSP shall offer the PSU the possibility of setting a limit, either on a daily basis or per transaction, fixing a maximum amount that can be sent by means of instant credit transfer. PSPs shall ensure that PSUs are able to modify that maximum amount at any time prior to the placing of a payment order for an instant credit transfer. 


When providing this new service, PSPs cannot impose charges that are higher than those imposed on regular credit transfers. In addition, PSUs will be able to place a payment order for such instant payments through all of the same payment initiation channels as for regular credit transfers, including online banking, mobile application or by phone. 

Service ensuring verification and screening of targeted financial restrictive measures

A payer's PSP shall offer the payer a free of charge service ensuring verification of the payee to whom the payer intends to send a credit transfer. The aim is to alert the payer of possible mistakes or fraud before a transaction is executed. Where the payer's PSP fails to comply with the verifications requirements, the PSP shall without delay refund the payer.

In addition, PSPs offering instant credit transfers shall verify whether any of their PSUs are persons or entities subject to targeted financial restrictive measures. Such verification shall be carried out immediately after the entry into force of any new targeted financial restrictive measures, and immediately after the entry into force of any amendments to such targeted financial restrictive measures, and at least once every calendar day.


Breaches of provisions introduced by the ICTr Regulation are subject to administrative penalties to be imposed by the competent national authorities. The penalties shall be effective, proportionate and dissuasive. For that purpose, Member States shall lay down the necessary rules by 9 April 2025.

For penalties applicable for infringements of the screening obligation related to the targeted financial restrictive measures, the Member States shall ensure that the penalties include: (a) in the case of a legal person, maximum administrative fines of at least 10 % of the total annual net turnover of the legal person in the preceding business year and (b) in the case of a natural person, maximum administrative fines of at least EUR 5,000,000.


PSPs shall annually provide a report to their competent authorities on: 

  • the level of charges for credit transfers, instant credit transfers and payment accounts; 
  • the share of rejections, separately for national and cross-border payment transactions, due to the application of targeted financial restrictive measures. 

The first report shall be submitted on 9 April 2025 and shall include information on the level of charges and on rejections during the period starting on 26 October 2022 until the end of preceding calendar year.

Extension of participation in payment system to PIs and EMIs

The scope of application of the Settlement Finality Directive2 is amended in order to include PIs and EMIs in the list of concerned institutions and therefore guarantee that the transfer orders by PIs and EMIs are settled even in the event of their insolvency.

The Payment Services Directive II3 is amended to provide that the PIs and EMIs that request participation in payment systems must adopt:

  • a description of the measures taken for safeguarding PSU's funds (which includes the possibility for PIs and EMIs to deposit funds in a separate account in a credit institution or a central bank);
  • a description of the governance arrangements and internal control mechanisms for the payment services or electronic money services it intends to provide; and
  • a winding-up plan in case of failure.

Member States shall transpose the amendments to the Settlement Finality Directive and the Payment Services Directive II by 9 April 2025.

Timeline of application

The ICTr Regulation came into force on 8 April 2024. It provides for different application deadlines for PSPs to offer the service of instant credit transfers depending on whether they are located in a Member State whose currency is the euro or not. The ICTr Regulation also provides for extended deadlines for EMIs and PIs.

The obligation to offer the payment service of receiving instant credit transfers will apply before the obligation to offer the payment service of sending instant credit transfers, since the sending of instant credit transfers is more costly and complex to implement. 

Location Entity Application deadlines
    Receiving Sending 
Eurozone PSPs other than EMIs and PIs 9 January 2025 9 October 2025
Eurozone EMIs and PIs 9 April 2027 9 April 2027
Non-Eurozone PSPs other than EMIs and PIs 9 January 2027 9 July 2027
Non-Eurozone EMIs and PIs 9 April 2027 9 July 2027


It is crucial that PSPs, PIs and EMIs consider the legal and technical ramifications of instant credit transfers in terms of, among other things, their documentation and adjust their internal operational systems (including IT) now in order to be ready for the execution of instant credit transfers as from 9 April 2025.


1. Regulation (EU) 2024/886 of the European Parliament and of the Council of 13 March 2024 amending Regulations (EU) No 260/2012 and (EU) 2021/1230 and Directives 98/26/EC and (EU) 2015/2366 as regards instant credit transfers in euro (the “ICTr Regulation”)

2. Directive 98/26/EC on settlement finality in payment and securities settlement systems, as amended (the “Settlement Finality Directive”)

3. Directive (EU) 2015/2366 on payment services in the internal market (the “Payment Services Directive II”)

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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